Argentina: Let’s plunder the pensions!

Argentina’s leftist President Cristina Kirchner signed a proposal nationalizing the country’s private pension funds in what could be seen as a grab for cash and power amid the global economic crisis.

As usual with dubious proposals,

Details of the proposal — which must be approved by the country’s legislature — were not immediately available.

However, it’s all done to “rescue Argentine retirees from uncertainty.” Sound familiar?

Of course, it had the predictable effect:

The proposal, which triggered a steep drop on Argentina’s stock market after it was disclosed by union officials and reported in the Argentine press, reinforces Argentina’s image as a pariah in financial circles and represents a repudiation of a system of private pensions that had been in vogue in developing countries. In 2001, Argentina announced the largest sovereign debt default in history.

And they need more funds right now.

The government said the takeover of the private system, created as an option to state pension funds in 1994, aimed to protect investors from losses due to the global market turmoil. But economists said the underlying motive would be to provide the government with about $5 billon in annual pension contributions that it needs to plug a gap in financing next year and avert a second debt default.

Think it can’t happen here?

Do you think the politicians here won’t lie trying to get their hands in your retirement money?

Comments

Same old, same old. Vivos rule! Menem refused to cut jobs for the boys ( see his home province), so the Arg. government kept borrowing abroad. Result: walking away from foreign debt. Scammed the Gringos ( foreigners, not just US in Argentine slang) again.

Evita III continues the same flim-flammery.

Evita III, why don’t you try cutting spending? Recall that Menem initiated an economic boom by unloading the government-owned companies, which stopped the need to print money to balance their losses. Cut the fool energy subsidies!

I will neither cry for Evita I,nor for Argentina nor for Evita III. You boludos elected her.